The ARM Business Model
EXECUTIVE SUMMARY 2
INTRODUCTION 3
THE INDUSTRY PERFORMANCE 3
DAVID VS GOLIATH 4
MONEY FOR THE NEW HORIZON 6
THE STRATEGY 7 Figure 1. ARM business model 8
WHERE NOW? 9
BIBLIOGRAPHY 10
APPENDIX 11
Figure 1. Details relating to mobile application processors to ship or sample during 2012 11
Figure 2. ARM holdings PLC: Summary of Finance 12
Figure 3. ARM revenue sources 13
Figure 4. Gartner-Hype-Cycle 14
Executive summary
The economic downturn had an impact on the semiconductor industry but the latest estimates are showing signs of recovery. While Intel is controlling this industry, the microprocessor, the semiconductor end market with a $ 313 billion market and strongest demand is controlled by ARM, a small British firm with a different business strategy than Intel.
The latest details about the Intel’s mobile processor have ignited ideas among users and stakeholders. Is this ARM’s end?
No. Comparing Medfield, Intel’s first SoC with ARM’s based application processors (see appendix, figure 1) fails on every comparison. Intel has a long way ahead to catch up with ARM’s microprocessors. The British company will maintain dominant market share in smart phones and tablets because of a superior
INTRODUCTION 3
THE INDUSTRY PERFORMANCE 3
DAVID VS GOLIATH 4
MONEY FOR THE NEW HORIZON 6
THE STRATEGY 7 Figure 1. ARM business model 8
WHERE NOW? 9
BIBLIOGRAPHY 10
APPENDIX 11
Figure 1. Details relating to mobile application processors to ship or sample during 2012 11
Figure 2. ARM holdings PLC: Summary of Finance 12
Figure 3. ARM revenue sources 13
Figure 4. Gartner-Hype-Cycle 14
Executive summary
The economic downturn had an impact on the semiconductor industry but the latest estimates are showing signs of recovery. While Intel is controlling this industry, the microprocessor, the semiconductor end market with a $ 313 billion market and strongest demand is controlled by ARM, a small British firm with a different business strategy than Intel.
The latest details about the Intel’s mobile processor have ignited ideas among users and stakeholders. Is this ARM’s end?
No. Comparing Medfield, Intel’s first SoC with ARM’s based application processors (see appendix, figure 1) fails on every comparison. Intel has a long way ahead to catch up with ARM’s microprocessors. The British company will maintain dominant market share in smart phones and tablets because of a superior